Hussman: Picture a stone going over a cliff

With Nouriel Roubini now preferring the moniker "Dr. Realist" to "Dr. Doom," and David Rosenberg turning optimistic, who's left to sell?

"If you picture a small child throwing a stone upward and out over the edge of the Grand Canyon, you’ll get a general idea of the market trajectory that we expect over the completion of this cycle," says John Hussman, remaining faithful to his fans.

He notes the S&P 500 price/revenue ratio of 1.6 is double the pre-bubble historical norm of 0.8. At the 1987 peak, the ratio was less than 1. At the 1965 and 1972 highs, it never breached 1.3.

"Also, take care to note that the price/revenue multiple is twice the historical median – not twice the level where bear markets have typically ended. No, the price/revenue ratio is closer to three times that level."